Bharati V. Pathak
Financial Markets
Financial Instruments
Financial Services
Maturity transformation
Risk transformation
Segments
Primary Market – A market for new issues
Secondary Market – A market for trading
outstanding issues
Primary
Secondary
Distinct Features
Marketable
Tradable
Tailor-made
Payments mechanism
Provision of liquidity
Risk management
Financial engineering
Market-based
Drawbacks
Prone to instability
Exposure to market risk
Free-rider problem
Drawbacks
Retards innovation and growth
Impedes competition